Facebook (FB) Stock Climbs in Pre-Market Trading Following Earnings Beat
NEW YORK (TheStreet) -- Shares of Facebook (FB) - Get Report are up by 4.95% to $109.08 in pre-market trading on Thursday, following the release of the company's third quarter earnings results after the closing bell Wednesday.
The social media website reported adjusted earnings of 57 cents per share, topping analysts' expectations of 52 cents per share by 5 cents.
Revenue for the period rose by 41% year over year to $4.5 billion versus analysts' $4.37 billion expectations.
Revenue for the quarter was helped by increased revenue from mobile. Of the company's 1.5 billion monthly active users, 1.38 billion accessed the site on mobile and 727 million are mobile-only users.
The company also noted that the number of videos played daily on the site doubled to 8 billion this year from 4 billion last year.
Facebook is a key holding of Jim Cramer's Action Alerts PLUS charitable trust. Here is what Cramer and AAP co-manager Jack Mohr had to say about the stock:
To put these massive numbers into perspective, Facebook's 1 billion-plus active users per day are more than the amount of people who watch the World Cup final, and this number continues to accelerate for the company. That said, it is easy to see why Facebook commands the No. 1 destination for marketers when it comes to advertising their products and services. The company's average revenue per user (ARPU) of $2.97 worldwide, which came in ahead of expectations, is a testament to the desirable marketing platform that Facebook has created. Impressively, ARPUs were up sequentially and year over year in all of the company's major operating regions, and were a staggering $10.49 per user in the U.S. and Canada.
All in, this exceptional type of quarter has become second-nature to the social media giant, and we can't wait for what's next.
- Jim Cramer and Jack Mohr, Facebook Books Another Stellar Quarter, 11/05/2015
Separately, TheStreet Ratings team rates FACEBOOK INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
We rate FACEBOOK INC (FB) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
data by
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.